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Twelfth consecutive losing quarter For Bingo.com
9/1/09 - The operator of the online bingo site Bingo.com, Bingo.com Limited, has released its unaudited financial results for Q2 2009 showing a twelfth consecutive losing quarter, attributed to rising marketing costs.
The firm's net loss of $266 702, was 13 percent higher than the same period last year, and 8 percent up on Q1 2009. Management attributed the loss to increased cost of marketing, which it said was necessary to enable the operation to succeed in an increasingly competitive UK market sector.
A company spokesman said: “We had cash of $848 749 and working capital of $752 304 before the provision for jackpots and players float of $340 317 at June 30, 2009. This compares to cash of $412 002 and working capital of $336 316 before the provision for jackpots and players float of $211 821 at December 31, 2008.”
Second quarter gaming revenues of GBP 957 040 were achieved, up by 41 percent year-on-year and seven percent higher than the previous quarter.
Bingo.com Limited recently completed a private placement of 1.5 million shares that brought in $225 000, while total revenues increased seven percent year-on-year and 14 percent quarter-on-quarter to $1.51 million.
“The second quarter of 2009 was a challenge for Bingo.com” said Tarrnie Williams, the company's CEO. “While our traffic and revenues continue to increase, the competition in the United Kingdom online bingo market is intense and has resulted in a reduction of individual player values.
"Our costs have increased due to our Maltese gaming license, affiliate marketing costs and our continued investment in search engine optimisation.
“We recognise that to capture a higher percentage of the online bingo market share and reach profitability we need to offer our players a unique gaming experience. As we put cost saving measures in place and continue to focus on improving the Bingo.com system, we believe we will achieve profitability in the coming quarters.”
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